Forced Early Retirement? 7 things you should do right now

By Michelle Arios

Special to the Financial Independence Hub

There are a lot of life situations that can lead someone to retire much earlier than they had initially anticipated. It could be illness, injury, the need to move quickly, an emergency family circumstance, or even a company closing its doors. Why you’re being forced to retire isn’t nearly as important as the silver lining you need to find in your situation, and what steps you’ll take to get there.

1.) Get a great Savings plan

Your normal savings account may not be enough to carry you through. It might help to change your current savings account to one that gives you a better interest rate, particularly if you’re going to consolidate your retirement accounts. It might also help to supplement your savings with some investments that will grow with time.

2.) Work out your new Budget

People in retirement often live on fixed incomes, especially if their spouse is also retired. You need to be sure your money can go as far as you need it to, and that might mean breaking apart your old budget and determining where and how you can best reduce costs while maintaining your quality of life. There are some easy-to-use smartphone apps that might help you do that.

3.) Downsize your Home

The expenses of maintaining a household are high. If you’re retired, you probably don’t need all the extra space anyway. Finding a roommate can help, and so can selling your previous home to purchase a smaller home that’s easier to maintain. Often times, utility bills will significantly go down on a smaller property. You’re also gaining some extra cash and a little more financial longevity.

4.) Find affordable alternatives

Monthly costs, like health insurance and cellular phone bills, can often add up to a lot of money. You might want to consider shopping around for a better deal. Continue Reading…

Countdown to Year-end: Is your tax planning in place?

By Matthew Ardrey

Special to the Financial Independence Hub

With less than a month to go before the end of the year, it’s time to give some thought to how you are going to put your affairs in order to minimize your taxes next April.

Below I have provided several points that you should contemplate for your own tax situation. Some of these are methods you should consider each year and some are very specific to this year, as the Federal Government proposed some significant changes to the Income Tax Act regarding corporate tax planning.

Capital gains/losses

The end of the year is a good time to review your portfolio. If there are stocks you are holding at a loss, you are better off to realize that loss before the end of 2017. In doing so, you will be able to use those losses to offset any capital gains you may have. If you do not have any capital gains in the current year, you can carry back your capital losses up to three years or forward indefinitely.

Age 71 RRSP Over-contribution

In the year in which you turn 71, you must convert your RRSP to a RRIF by December 31. Once you are in the year you turn 72, you may no longer make personal RRSP contributions; however, spousal RRSP contributions are still permitted if you spouse is under age 72. If you have earned income in your age 71 year, you can make an RRSP contribution in December. Though you will be over-contributed for one month, as you will have new contribution room on January 1, and have a penalty tax on it, the tax savings from the deduction could far outweigh the penalty.

Charitable Donations

December 31 is the final day to make a charitable contribution and receive the tax credit for your 2017 tax filing next April. With donations, the amount you contribute and the amount you earn have an impact on the credit you will receive. The first $200 attracts credits at the lowest marginal tax rates, but those above $200 can attract credits at or near the top bracket. In Ontario, for example, the first $200 will attract a credit of 22.89%, income below $220,000 a credit of 46.41% and above $220,000 50.41%. Continue Reading…

Tips for building brand awareness online

By Emily Jones

Special to the Financial Independence Hub

Marketing your online business isn’t necessarily a cut and dry endeavor. For instance, you may have the best products on the planet but are having trouble getting them in front of the right people. Or you’ve found the right people but are unable to communicate with them clearly. Either way, you won’t be making any money.

In the marketing world, there’s no quick fix to success: there are things you should know before choosing your business growth strategies and the following brand building strategies can help you take your efforts to the next level.

The Internet is now pervasive

There’s no denying it: the Internet dominates virtually every aspect of our lives. Thus, it comes as no surprise that it has become very a popular and effective marketing medium. Take control of this monster with these two tips:

Leverage social media

Sites like Instagram, LinkedIn, Snapchat, Twitter, and Facebook have the potential to boost the popularity of your brand exponentially. But to get the most out of these sites, it’s important to know which one works best for your brand. For instance:

  • Pinterest and Instagram are best for sites with a lot of pics
  • B2Bs do best on Twitter
  • Small businesses in creative industries do well on Instagram

To succeed, you must create a creative and engaging marketing campaign to help you stand apart from your competition. Do so by posting updates several times a day to make sure you are engaging with your audience on a regular basis.

Embrace influencer marketing

Influencers are well liked and trusted by their audience, making an endorsement by them very valuable. To take advantage of this, find key influencers who are already in your industry. Just make sure that their business complements (rather than competes) with your product or service.

Popular influencers are being courted by my many companies. Give yourself an advantage by researching them: this will give you an idea of what you can do capture their interest and get them to listen to your story.

You may also want to create a couple of influencer strategies. In this way, if your desired influencer decides to go another way, all is not lost. You have other options to choose from.

Offline Brand Building

Although most of your brand building marketing work will be done online, there’s still something to be said about offline marketing. Continue Reading…

5 ways to turn your Savings into Capital Gains

By Sia Hasan

Special to the Financial Independence Hub

Continuously adding to your savings account is a responsible and astute financial step towards a comfortable retirement. Unfortunately interest rates offered by banks on standard savings accounts make for really slow growth, which is barely enough to keep up with inflation. Fortunately, there are other investment options out there that can increase your money at a more decent pace, one of which is stocks. Here are five techniques to turning your spare cash into a portfolio that grows both in capital gains and dividend income.

1.) Start Small

You don’t need to pour all of your savings into stocks right away. Going about it slowly can minimize risk. For example, if you have $10,000 as your savings, start buying 10 to 20 shares of stocks per month. Consider increasing your order size or frequency of purchase as you gain more experience or as you get more data about specific companies. If company XYZ’s stock price has solid momentum, consider buying more of it.

2.) Dollar Cost Averaging

You can also do dollar cost averaging, which basically involves setting a budget to buy stock each month. For example, if you have $1,000 to invest per month and company XYZ’s stock costs $50 for this month, you buy 20 shares of it. The next month, it costs $40 per share, so you buy 25 shares. The month after that, it actually increase to $100, so you buy 10 shares for that month and so on.

3.) Strategize according to your Lifestyle

A methodical approach to investing is key to growing your investment portfolio consistently. Strategy removes emotions from the equation, which for an investor can be a detrimental quality or set of qualities to bring in the stock market. Figure out what strategy best fits you. Someone who is saving money month after month is probably occupied with a full-time job; hence there are limited hours in the day for monitoring prices and current positions. Continue Reading…

The destructive effects of poor Human Resource Planning

 By Dr. Yvonne Foster

Special to the Financial Independence Hub

The success of every business depends on so many things, one of which is strategic human resource planning. If you are a start-up organization, you will benefit greatly by taking the advice of an HR consultancy firm or a trained HR agent who will pilot the affairs of your organization.

Poor human resource planning has a long-term and immediate influence on management policies, employee recruitment, corporate profitability and organizational functioning. In this post, we are going to talk about effects of poor human resource planning:

Poor HR planning and Management

If you have a poor or incompetent human resource department, it will have a negative impact on your organization, there will be no or poor training and re-training of the employees. Also, if your executive management does not pay enough attention to HR best practice it will lead to poor decision making process and critical mistakes. If you have a poor HR system, you will be liable to have employees that won’t have the best interests of your organization at heart.

Unmotivated employees

Having a poor HR system has so many drawbacks. It can lead to poor team building and personality conflicts, and most experienced employees may be uncomfortable with the work environment.

Adversely, there would be gross underutilization of their skills. Poor HR planning will give rise to lack of incentives, poor motivation, poor performance, and perhaps also the production of poor products and services.

Employee requirement mismatch

Recruiting and hiring the right talent is a continuous process. An HR professionalwith poor communication skills and lackadaisical attitude will be unable to address organizational and workforce requirements.

Continue Reading…